AfriSake opposed to proposed new formula for agricultural land valuation

AfriSake opposed to proposed new formula for agricultural land valuation

The property rights watchdog AfriSake is opposed to the proposed property valuation formula in the Property Value Bill, which will be specifically applicable to land for land reform and/or for expropriation by a government department.

AfriSake is currently commenting on what they will submit to the Department of Rural Development and Land Reform.

Dr. Anthea Jeffery, Head of Policy Research at the South African Institute for Race Relations, explained the operation of the proposed formula as follows: If a farm delivers a market value of R1 million and a net income of R100 000 per annum, the Formula is that the sum of these two amounts be divided by two, which will amount to a valuation of R550 000 – half the actual value of the land.

“Gugile Nkwinti, Minister of Rural Development and Land Reform, and its destructive regulations and policies will be primarily responsible for the decline of food security and a flourishing agricultural economy,” said Charles Castle, AfriSake manager. “This bill is just another nail in the coffin of economic growth and development of the agricultural sector.”

Lindiwe Sisulu, Minister of Human Settlements, has in the meantime also submitted the Property Practices Bill. This bill aims to regulate real estate agents to transform the property market, among other things.

Other recent laws, policies, and proposals that directly threaten property rights include the Agricultural Property Rights Bill, the proposed Land Reform Amendment Act, the proposal of a wealth tax on land and a national tax on property value in addition to regular municipal property tax.

AfriSake will with the support of its members continue to unleash economic prosperity and freedom for all South Africans.